NADA Auto Show 2016 coverage

 The Himalayan Times_Perspectives                           

 August 31, 2016

"With this edition of NADA Auto Show, we expect the automobile industry to reach new heights"

ANJAN SHRESTHA is the President of Nepal Automobile Dealers’ Association (NADA).  He spoke to Soni Rai of THT Auto Plus about ‘NADA Auto Show 2016’ and the current situation of Nepali automobile industry.

What are your expectations from this edition of the NADA Auto Show?
The Nepali automobile industry has been witnessing growth every year. We expect it to grow even further this year. The industry is growing by two folds as compared to the last year that is around 40 per cent. The main objective of this expo is to update people about the latest developments in the automobile sector. This event is a platform for automobile companies to promote their products. There has been a consistent increase in the number of exhibitors and visitors every year. We are trying to accommodate each and every automobile dealer at the auto show so that no dealer is missed. With this edition of NADA Auto Show, we expect the automobile industry to grow to new heights.

What s the current scenario in the auto industry?
The domestic automobile industry is growing every year. Now people's perceptions about automobiles have changed to a great extent. People have understood that an automobile is no longer a commodity of luxury rather it is a necessity. The only problem is the hefty tax imposed by the government. Hence, the government needs to understand that an automobile has become one of the basic needs of people. As the auto show is scheduled just before the festive season, we are optimistic that the industry will witness significant growth in sales. Customers and auto enthusiasts are also eagerly waiting for the auto show to purchase new and latest vehicles; for sure they are looking for the best deals.

How is this NADA Auto show different from the previous shows?
Compared to previous editions, this year there are more participants at the auto show. Last year there were 65 exhibitors whereas this time we have 73 exhibitors. We have 125 stalls — separate sections for two-wheelers, four-wheelers, commercial vehicles, and heavy equipments have been allocated. This time some new automobile companies like Morris Garage (MG), Renault, Bela, Runner, Scomadi, et cetera are also participating at the mega event. It shows that the number of individual automobile dealers have increased which indicates that the event has been improving and becoming popular among both exhibitors and visitors.

The automobile business largely depends on auto loans. What is the current status of auto loans?
In today’s context, auto loans are very lucrative. Currently banks are offering as low as seven per cent interest rates on auto loans. The easy access to auto loans and attractive interest rates is the major reason behind the growth that the automobile sector has been experiencing recently. Earlier, auto loan seekers had to go through a long procedure, but now easy processing and flexible interest rates have largely encouraged customers to opt for auto loans. We can say that the flexible auto loan is one of the major factors for the growth of the industry.

What are your expectations from the auto show?
We have always organised the auto show just before the festive season. The main objective of the expo is to inform customers about new and latest launches in the Nepali market. As previous editions of the auto show have been fruitful and created positive vibes in the market, we are confident that this edition too will help make the industry more vibrant.

Since the government has been imposing hefty tax on the import of vehicles, what does NADA expect from the government?
The automobile industry has been one of the major contributors of revenue generation in the country. It has the potential to contribute even higher revenue. However, the imposition of hefty taxes on the import of vehicles has deprived the government from collecting more revenue. We have been always urging the government to reduce custom duty at least by 10 to 15 per cent. The government has to understand that the automobile is no longer a commodity of luxury rather it is a matter of necessity. We have been always urging the government to either make public transportation more organised or make private vehicles more affordable.

The domestic automobile industry was largely last year. How is the industry doing today?
The earthquake and economic blockade were two major hurdles for the domestic automobile industry in the last fiscal. There was no investment made during those days. However, as soon as the blockade was lifted backlog sales took place. Also to add to that, demand for the electric vehicle was high during the fuel crisis and slowly the emergence of electric vehicle has begun. Though the industry has taken time to revive, now the automobile sector is back to its normal state. We are optimistic about the auto show as it will definitely create positive vibes in the entire industry.